What is the difference between a construction loan and a traditional mortgage?

A construction loan is short-term, disbursed in stages during the build, while a traditional mortgage is long-term, disbursed in full upfront. At Mike Hollaway Custom Homes, we guide you through understanding these options.

How does a construction loan draw schedule work?

A draw schedule releases funds in phases as construction milestones are completed. At Mike Hollaway Custom Homes, we ensure this process is seamless and aligns with project progress.

What challenges might I face with construction financing?

Common challenges include meeting lender requirements and managing draw schedules. We help navigate these hurdles, working closely with lenders to keep everything on track.

Navigating Construction Loans for Custom Homes

AUTHOR Mike Hollaway

DATE Jul 23, 2026

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One of the many ways I distinguish myself as a builder is through my expertise in financing. Coming from a real estate sales background, I have a comprehensive understanding of construction loans and permanent financing options, making the entire financial process smoother for my clients.

A construction loan is fundamentally different from a traditional mortgage. It’s a short-term loan used to fund the construction of a new home. Unlike a regular mortgage, where the loan is disbursed in full at once, a construction loan is disbursed in stages—or draws—based on the progress of the build. Lenders usually require detailed plans, a firm build timeline, and an estimated budget before approving such a loan, and they monitor progress closely.

Coming across common financing challenges is inevitable, whether it’s meeting lender requirements or managing draw schedules. This is where my experience comes into play. I assist clients with understanding their financing options and work closely with lenders to ensure everything runs smoothly. Proper education on financing helps alleviate anxiety and keeps the focus on realizing your vision.

From day one, my goal is to empower clients with knowledge that aids confident decision-making. If you’re considering building a custom home and want to explore your financing options, call me at (210) 490-0069. Let’s make your dream home a reality.